Why Every Real Estate Investor Needs a CPA on Their Deal Team

Why It Matters

A CPA on the deal team transforms raw lease data into actionable financial insight, reducing risk and enhancing tax efficiency for real‑estate investors.

Key Takeaways

• Involve CPA early for thorough financial due diligence
• Analyze rent rolls to differentiate current vs projected income
• Scrutinize CAM estimates and lease language to avoid unexpected expenses
• Review tenant financials for credit risk, debt trends, cash flow
• Choose tax‑efficient entity; avoid C‑corp unless specific foreign needs

Summary

The discussion, hosted by Karly Iacono and CPA Brian Lovett, centered on why a certified public accountant should sit at the table from the outset of any commercial real‑estate transaction. Lovett explained that a CPA’s role goes far beyond post‑sale tax filing; it begins with deep financial due diligence, ensuring investors understand the true cash‑flow story behind a property. Key insights included the need to dissect rent rolls—distinguishing in‑place rents from future step‑ups—scrutinize common‑area‑maintenance (CAM) estimates versus year‑end reconciliations, and read lease language for caps and recoverable expenses. He also highlighted the importance of evaluating tenant financial statements for creditworthiness, debt trends, and cash‑flow health, noting that hidden liabilities can dramatically alter a deal’s risk profile. Lovett provided concrete examples: a mis‑managed CAM billing structure can inflate NOI, while a lease that improperly classifies capital expenditures can expose the new owner to unexpected costs. He stressed that the CPA acts as a bridge between brokers, attorneys, and investors, translating lease clauses into financial impact and identifying tax‑efficient ownership structures—typically favoring partnerships or LLCs over C‑corporations unless foreign investment dictates otherwise. The implication for investors is clear: early CPA involvement equips buyers with accurate projections, mitigates surprise expenses, and optimizes tax outcomes, ultimately enabling more disciplined offers and stronger long‑term returns.

Original Description

Why Every Real Estate Investor Needs a CPA on Their Deal Team

Most commercial real estate investors focus heavily on physical due diligence — inspections, environmental reports, and site analysis.

But many overlook a critical part of the deal: financial and tax strategy.

In this episode of Commercial Real Estate Now, host Karly Iacono sits down with Brian Lovett, Partner at Withum, to discuss why CPAs should be involved before a deal closes, not after.

They cover:

• Why CPAs should be part of your deal team early

• The financial due diligence investors often overlook

• What rent rolls really reveal about a property

• Understanding the difference between in-place rents and projected income

• Structuring acquisitions for tax efficiency

• Depreciation strategies in real estate investments

• How accountants help investors make smarter acquisition decisions

If you’re buying commercial real estate, understanding the financial and tax implications of a deal can significantly impact your returns.

This episode breaks down how smart investors use tax professionals to evaluate opportunities and protect their upside.

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